Yesterday, the Court of International Trade issued an opinion that neither the worldwide reciprocal tariffs nor the fentanyl tariffs on goods from China, Canada, and Mexico are authorized under the IEEPA. As such, the Executive Orders implementing the tariff actions should be vacated.
The Court held that the tariff actions exceed the authority granted to the President under the International Economic Emergency Powers Act. While it is certain that the White House will request a stay and appeal the judgments, this is a very important decision that leaves the future of both tariff actions in doubt.
The CIT decisions are just the latest twist in what has been a tumultuous time of rapidly changing tariff actions. Certainly, there are more twists to come. We’ll keep a close watch on the legal maneuvering, but for now, nothing has changed on the application of these tariffs. Note that the CIT decisions have no effect on the Section 232 tariffs for steel and aluminum products or any other active tariffs.
Best Regards,
Sam McClure, LCB
Director of Compliance & Customs Services